Gold saw steady buying support as US Federal Reserve Chairman Jerome Powell said the pace of jobs growth is rising faster than many people expected, but it may take years before the economy has fully recovered. Powell noted that US economy likely will require more government spending and low interest rates for years. The US Labor Department said its keenly eyed non-farm payroll employment surged up by 1.371 million jobs in August after spiking by a downwardly revised 1.734 million jobs in July and soaring by 4.781 million jobs in June. The strong job growth in August was partly due to the hiring of 238,000 temporary 2020 Census workers. Typically, such comments from the Fed have turned out to be good for Gold prices and the metal could extend gains in coming days having already tested one and half week low of $1921 per ounce on Friday. COMEX Gold ended at $1941 per ounce, up 0.15% on the day.
Gold prices edged higher on Monday as the dollar slipped, with weak economic data out of the United States at the end of last week raising fears over the global economic recovery from the COVID-19 slump. U.S. employment growth slowed further in August and permanent job losses increased as money from the government started running out, raising doubts on the sustainability of the economy’s recovery from the deep COVID-19 recession. The dollar index was off from a one-week high hit in the previous session. A weaker greenback makes gold less expensive for holders of other currencies. The head of the Chicago Federal Reserve on Thursday called on Congress to deliver more fiscal aid and signaled U.S. monetary policy would be eased further and interest rates kept at ultra-low levels for years to help the economy recover its pre-pandemic strength. U.S. weekly jobless claims fell below 1 million last week for the second time since the pandemic started, but that did not signal a strong recovery in the labor market. Investors now await U.S. payroll figures due later in the day for further signs of labor market stagnation. Silver eased 0.2% to $26.84 per ounce.
TREND : WEAK BEARISH
Time : 07/09/2020
Pivot : 1935.21
Technical View : LONG ABOVE 1938.25
Target : 1941.29, 1946.79, 1952.24
Technical View : SHORT BELOW 1932.56
Target : 1929.94, 1924.59, 1918.99